Oct 19 (Reuters) - Activist investor Jana Partners has
built a stake in medical device maker Cooper Companies ( COO )
and plans to push for strategic alternatives, two sources
familiar with the matter said on Sunday.
Jana, one of the industry's most prominent corporate
agitators, also plans to push Cooper to improve capital
allocation that could boost returns, the sources said,
requesting anonymity as they are not permitted to discuss the
matter publicly.
The Wall Street Journal, which first reported Jana's
position in Cooper earlier in the day, said the fund may push it
to consider combining its contact-lens unit with rival Bausch +
Lomb ( BLCO ).
Cooper in August had lowered its annual revenue forecast due
to a slowdown in demand across certain geographies.
CooperVision, the company's contact lens division, reported
quarterly sales of $718.4 million, missing analysts' average
estimate of $721.8 million. Cooper also has a subsidiary called
CooperSurgical, a fertility technology company.
Representatives for Jana Partners, Cooper Companies ( COO ) and
Bausch + Lomb ( BLCO ) did not immediately respond to Reuters' request
for comment.
"A potential combination with Cooper would strengthen
competition and create a more scaled company in the contact-lens
segment," Bausch + Lomb ( BLCO ) Chief Executive Brent Saunders was
quoted in the WSJ report.
Jana also believes Cooper Companies' ( COO ) strategy has generated
little value for shareholders, leaving a more complicated
business with poor capital allocation, the sources told Reuters.